Budget 2019- Analysis

Source : Press Information Bureau

(source: business Standard)
 .Budget expenditure increased in 2019 at 27.84
lakh crore rupees as compared to
Union Budget 2018, where the expenditure
figure was 24.42 lakh crore rupees.
• The total revenue expected in the financial
year 2019-20 (without considering
borrowing) is only Rs. 20.80 lakh crores.
• The Indian government needs to borrow Rs.
7 lakh crore in the financial year 2019-20 to
meet its expenditure.

Tax Revenue is Rs.17,05,046 crore (meets only 61% of expenditure)

Revenue receipts less than revenue expenditure by Rs. 4,70,214 crore( used for day to day
operations) additional revenue to be used in capital expenditure.
 Agriculture and Allied products
• Bad weather conditions
• Supply>demand( food)
• Local and global food prices record
low(food inflation is negative)

India has 150 million indigenous cows with

extremely low productivity.
Gaja cyclone had hit shrimp farmers in
parts of Tamil Nadu.

• Pradhan mantri Kisan Samman Nidhi- from Raytu Bandhu Scheme

telangana govt
• Rashtriya Kamdhenu Aayog-750cr under rashtriya gokul mission
• Fisheries-separate dept.
• 2% interest subvention for farmers pursuing animal husbandry and
fisheries(through Kisan Credit Card.) and 3% on timely payment
 PM-KISAN
• Only Rs. 500 per month
• State governments like and Telangana (Rs. 8000 per acre) give more amount;
• 75000cr in FY20 & 20000 in FY19
• Change in estimates of Fiscal deficit from-
3.1% to 3.4%(for FY19)
3.3% to 3.4%(FY18)
• Rs. 2000 to be given this FY (hint : elections)
• Schemes leave out landless farmers as well as the urban poor.
• Direct income transfer for policies(good)

Boost shrimp production and exports

India top producer of aquaculture shrimps in the world at more than 6 lakh
tonnes last FY ,earned Rs 45,000 crore in foreign currency.
Boost to dairy (interest subvention)
Gokul mission- boost milk productivity and production
 Pradan Mantri Shram Yogi-Maandhan
yojna
• Similar to Atal Pension yojna and could be clubbed
• Workers in informal sector affected by demonetisation and
GST

• Covers unorganised sector of 10cr workers

• monthly income of Rs.15000 get assured pension of Rs. 3000(monthly)
• Contribution of Rs. 100( from 30yrs)/55(from18yrs)
 Entertainment

• Potential to promote tourism

• Single window clearance for Indian film makers

• Amendments in the Cinematography Act
 Income tax
• Return process in 24hours
• Refund faster
• Anonymous checking of returns-no harassment of tax payers
• fully rebate income tax on incomes of Rs. 5 lakh per year, benefiting 30
million middle-class taxpayers( include small businessmen)(HINT: BJP’s
core support base. )
• 80TTB in the Income-tax Act for senior citizens. Max of Rs. 50,000
available on the interest income.
• Standard deduction increased Rs. 50,000 from Rs. 40,000 for salaried
individuals
• The announcements result in
tax saving of up to Rs 12,500
for all taxpayers.
• If benefits under 80c are
included, individuals with
income of up to Rs 6.5 lakh
will have to pay no tax.

TDS threshold for interest earned on FD and P.O.

deposits to Rs 40,000 (50,000 for senior citizens) from • Tax collection doubled
Rs 10,000-not pay TDS till earnings of 40,000. • Return filed 80% increase
 Real Estate

Boost to real estate sector

• 2 houses exempt (pay notional rent limit-2lcs)

• TDS threshold for rental income is up from Rs 1.8
lakh to Rs 2.4 lakh.
• non-taxability of notional rental income on unsold
inventories for two years
• benefits of rollover of capital gains up to INR 20
million
 Transportation
• Mention of electric vehicles and renewable energy but no concrete plans
to implement
• NHAI-have to go for higher fundraising through borrowings and
monetisation of road assets as reduced budgetary support by Rs 631.63
crore
• [operating ratio : how much money spent to earn a rupee]
• allocated Rs 64,587 to railways , highest ever capital-expenditure allocation
of Rs 1.58 lakh crore

• The operating ratio of the railways is expected to improve from 98.4% in

2017-18 to 96.2% in 2018-19 and to 95% in 2019-20,
 Others
• Youth-National Programme on AI(new)
• One lakh more villages to get digital connectivity.
Electricity connection to all willing families- cant complain
about no electricity in village

[Customs to go for digitisation of imports and exports

transactions]

(no new schemes)

Women-Ujjwala Yojna, Pradhan Mantri MUDRA Yojna, Maternity leave of 26 weeks
Youth- Startup India
Allocation for Integrated Child Development Scheme (ICDS) is being increased from
Rs.23,357 crore in BE 2018-19 to Rs.27,584 crore in BE 2019-20.
 Financing of the fiscal Deficit

• higher fiscal deficit financed will lead to higher

market borrowings.
• No policy to increase revenues
• GST estimates around 20%
• Revenue deficit at 2.2% of GDP
• From disinvestment expected 90,000cr
Measures
Plan to increase staff about4%
Specific allocation to SC/ST farmers under
PM-KISAN
Interest subsidy to fishing and animal
husbandry
Pension for unorganised sector
Rebate of up to 12.5K( income less than
5lakh/annum)
Central allocation for Regional
Connectivity Scheme up by 8.84%
67% rise in allocation to provide digital
connectivity in villages
Impact
Spending on salary and pension at 2% of
GDP
25% go to vulnerable farmers
Raise non cultivable income of farmers
If all subscribe 93% of low paid working
Indians could get pension
Help save 1,000 a month for 30 mn
13 new airports connected to India’s
aviation network
100,000 digital villages to be created